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Superannuation Fund Property Valuations

For those who have a self-managed superannuation fund (SMSF), there are a number of regulations which must be adhered to. These requirements include the obligation to submit documentation confirming the current market value of assets held in the SMSF. This is submitted to the Australian Taxation Office (ATO) annually, at the end of the financial year, in order to remain compliant with tax legislation.

 

What reasons are there for requiring a property valuation for a SMSF?

A property valuation determines the correct current market value of a property, which can be used for the annual financial reporting to be submitted to the ATO.

In addition to this, there are some other situations when a valuation of SMSF assets is necessary for ATO compliance. This includes when a property is sold or purchased as part of a SMSF, and to determine eligibility for specific tax relief incentives.

 

Why choose a certified property valuer for your SMSF valuations?

To have an accurate value of a certain property held in your SMSF, the ATO recommends choosing an independent and certified property valuer. A certified property is required to have a university degree, have industry experience, and undergo additional training. This means they operate to the highest industry standards and complete accurate, well-informed valuations.

Choosing a certified property valuer is especially recommended in cases where the value of the asset is a significant percentage of the overall value of the SMSF. Due to the large amount of value typically held in a property, there is a high chance that properties contribute substantially to the super fund and therefore require a certified valuer to determine the accurate value.

Perth Property Valuers is an independent property valuation company, and we pride ourselves on the expertise of our valuers. All our property valuers have over 20 years of experience and are trained and certified with the Australian Property Institute (API). Because of this, we can guarantee accurate, high quality valuation reports that are bias free.

In addition to this, we have a specialised team of property valuers dedicated to providing valuations for taxation purposes. This means they can prepare the valuation report in a way which is compliant with the requirements of the ATO.

 

How often are property valuations required for SMSF reporting?

SMSF financial reports must be submitted each year to the ATO. However, it is not needed to get a new property valuation report each year. Instead, it is recommended by the ATO to renew your independent property valuation report every third year. This is to make sure the value you report remains up to date and relevant for the current market condition.

It is also worth noting that a property valuation must be updated after significant market events which may impact the value.

If you need a property valuation for your SMSF or have any further questions, please contact our team on (08) 9468 3202. We are always happy to help!